In June 2019, the Union Cabinet chaired by the Prime Minister ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.[i] Earlier, India and the US had signed an agreement for the exchange of country-by-country report in order to give massive relief to subsidiaries of US-headquartered companies in taxation-related matters. The filing of Country-by-Country (CbC) Report by the multinational companies placed a huge compliance burden on the subsidiary companies. Hence, the agreement signed between India and the US will enable both countries to automatically exchange CbC reports filed by the parent entities. This was part of the action plan adopted by the Organisation…